I said it before, and I'll say it again.
If this was a normal 11 year-old, no one would've given two shits about it. Some might have even called it justice, because a cheater had been properly banned.
But because he was autistic, people went nuts. Microsoft was suddenly the bad guy, and no matter what they did or how things played out, they were going to be viewed as the bad guy. His autism has no real bearing on the story at all - the moderators at Xbox Live followed company procedure and felt it was evidence enough to ban him. They did their job to the fullest extent and in what they felt was the most proper way.
TL;DR - Kid with a disability gets banned for cheating (after he actually cheated), people go ballistic because he had a disability and Microsoft was "ruining his life".